Head-To-Head Survey: Lumen Technologies (NYSE:LUMN) vs. Spirent Communications (OTCMKTS:SPMYY)

Spirent Communications (OTCMKTS:SPMYY) and Lumen Technologies (NYSE:LUMN) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Valuation & Earnings

This table compares Spirent Communications and Lumen Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spirent Communications $522.40 million 4.75 $84.40 million $0.58 27.95
Lumen Technologies $20.71 billion 0.67 -$1.23 billion $1.67 7.51

Spirent Communications has higher earnings, but lower revenue than Lumen Technologies. Lumen Technologies is trading at a lower price-to-earnings ratio than Spirent Communications, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Spirent Communications has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Lumen Technologies has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Institutional and Insider Ownership

75.5% of Lumen Technologies shares are held by institutional investors. 1.0% of Spirent Communications shares are held by company insiders. Comparatively, 0.6% of Lumen Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Spirent Communications pays an annual dividend of $0.27 per share and has a dividend yield of 1.7%. Lumen Technologies pays an annual dividend of $1.00 per share and has a dividend yield of 8.0%. Spirent Communications pays out 46.6% of its earnings in the form of a dividend. Lumen Technologies pays out 59.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Spirent Communications and Lumen Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spirent Communications N/A N/A N/A
Lumen Technologies -4.65% 16.28% 3.25%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Spirent Communications and Lumen Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spirent Communications 1 2 2 0 2.20
Lumen Technologies 1 1 0 0 1.50

Lumen Technologies has a consensus target price of $13.50, suggesting a potential upside of 7.57%. Given Lumen Technologies’ higher probable upside, analysts clearly believe Lumen Technologies is more favorable than Spirent Communications.

Spirent Communications Company Profile

Spirent Communications Plc engages in the development of communication technologies. It operates through the following segments: Networks & Security, Lifecycle Service Assurance and Connected Devices. The Networks & Security segment consists of the cloud and IP, application security and positioning lines of business. The Lifecycle Service Assurance segment offers solutions that enable the measurement of network performance and customer experience periodically and the rapid diagnosis of detected or reported network performance and customer experience problems. The Connected Devices segment consists of the wireless and service experience lines of business together with communications technologies management. Spirent Communications was founded by Jack Bowthorpe in 1936 and is headquartered in Crawley, the United Kingdom.

Lumen Technologies Company Profile

Lumen Technologies, Inc. is an investment holding company, which engages in the provision of integrated communications to residential and business customers. It operates through the following segments: International and Global Accounts Management, Enterprise, Small and Medium Business, Wholesale, and Consumer. The International and Global Accounts Management segment offers products to Europe Middle East and Africa, Latin America, and Asia. The Enterprise segment includes products and services to large and regional domestic and global enterprises, as well as the public sector, which includes the U.S. Federal Government, state and local governments, and research and education institutions. The Small and Medium Business segment products and services to small and medium businesses directly and through indirect channel partners. The Wholesale segment covers a range of other communication providers across the wireline, wireless, cable, voice and data center sectors. The Consumer Segment caters to residential customers. The company was founded in 1930 and is headquartered in Monroe, LA.

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